We only have the one primary site so I'm just confused about these boundary groups and am trying to prevent any overlaps. If I were to use the IP Addresses strictly, then I would end up with boundary groups with overlapping boundaries (using same IP address ranges) <- hope that makes sense.

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In your case if you have 1 Primarysite and 4 DP for packages, i would run the Forest Discovery, it will create a boundary, enable it for site assigment. Then i whould create 4 different boundaries yes based on IP ranges, it will actually overlap the first one that Forest discovery creates, and assign them to my DP's only for content location described in the article you mentioned.